Choksi Accounts Frozen: SEBI Insider Trading Action
- The Securities and Exchange Board of india (SEBI) has directed all Indian banks to freeze the accounts and assets of Mehul Choksi, the fugitive diamantaire.This action aims to...
- Choksi, already a key accused in the ₹13,000 crore Punjab National Bank fraud, faces this penalty for violations of securities law.
- SEBI's order encompasses all bank accounts and lockers held by Choksi,individually or jointly.
SEBI has frozen the assets of Mehul Choksi to recover ₹2.1 crore for insider trading violations. This decisive action follows Choksi’s failure to respond to recovery notices concerning Gitanjali Gems, underscoring the regulator’s commitment to enforcing financial regulations. The directive mandates indian banks to freeze all of the fugitive diamantaire’s accounts,lockers,and assets,including receivables and interest. This move is a direct response to Choksi’s violations and ignores repeated warnings. The SEBI insider trading action also encompasses the initial penalty and accrued interest since Febuary 2022 and underscores the importance of the Punjab National Bank fraud case. News Directory 3 is following the story. Discover what’s next in the ongoing saga of Choksi and the authorities.
SEBI Freezes Mehul Choksi’s Assets in Insider Trading case
Updated June 7, 2025
The Securities and Exchange Board of india (SEBI) has directed all Indian banks to freeze the accounts and assets of Mehul Choksi, the fugitive diamantaire.This action aims to recover ₹2.1 crore in outstanding dues related to insider trading violations involving Gitanjali Gems.
Choksi, already a key accused in the ₹13,000 crore Punjab National Bank fraud, faces this penalty for violations of securities law. The ₹2.1 crore includes the original ₹1.5 crore penalty, ₹60 lakh in interest accrued since February 2022, and ₹1,000 in recovery costs.
SEBI’s order encompasses all bank accounts and lockers held by Choksi,individually or jointly. It also covers any receivables, interest, or deposits due to him. Banks must report any such accounts and block all transactions.
The regulator stated that Choksi ignored repeated reminders and a final demand notice issued May 15,2025. Citing the risk of Choksi moving funds, SEBI initiated recovery under Section 28A of the SEBI Act.
Banks have been instructed to report any account or locker belonging to Choksi and block all transactions until further notice.
Choksi, who fled India in 2018 and currently resides in Antigua and Barbuda, has been the subject of extradition requests.This SEBI action is separate from the criminal proceedings related to the PNB scam.
The asset freeze reflects increased scrutiny of high-profile economic offenders and greater coordination among regulatory bodies to recover assets from fugitives. The move effectively cuts off Choksi’s access to Indian banking, pending appeal or payment.
What’s next
Unless Choksi appeals and clears his dues, SEBI is expected to escalate enforcement. Indian agencies continue to pursue his extradition, though courts abroad have yet to rule conclusively.